Required:
1. Compute the regular, overtime, and gross earnings for each employee. Enter the figures in the payroll register.
2. Compute the amount of social security tax to be withheld from each employees gross earnings. Assume a 6.2 percent social security rate on the first $132,900 earned by the employee during the year. Enter the figures in the payroll register.
3. Compute the amount of Medicare tax to be withheld from each employees gross earnings. Assume a 1.45 percent Medicare tax rate on all salaries and wages earned by the employee during the year. Enter the figures in the payroll register.
4. Determine the amount of federal income tax to be withheld from each employees total earnings. Use the tax tables in Figure 10.2a & Figure 10.2b to determine the withholding for Russell. Withholdings are $112.00 for Dodger, $323.00 for Garcia, and $258 for Dollar. Enter the figures in the payroll register.
5. Compute the net amount due to each employee and enter the figures in the payroll register.
6. Dodger and Russell are office workers. Garcia and Dollar are delivery workers.
7. Prepare a general journal entry to record the payroll for the week ended December 21, 20X1.
8. Prepare a general journal entry on December 23 to summarize payment of wages for the week.
Analyze: What percentage of total taxable wages was delivery wages?
Problem 10.3A (Static) Computing gross earnings, determining deductions, preparing payroll register, journalizing payroll transactions. LO 10-2, 10-3, 10-4, 10-5 Alex Wilson operates On-Time Courier Service. The company has four employees who are paid on an hourly basis. During the workweek beginning December 15 and ending December 21, 20X1, employees worked the number of hours shown below. Information about their hourly rates, marital status, and withholding allowances also appears below, along with their cumulative earnings for the year prior to the December 15-21 payroll period. Consider any hours worked beyond 40 in the week as overtime hours and overtime pay at one and one-half times their regular hourly rate. Required: 2. Compute the regular, overtime, and gross earnings for each employee. Enter the figures in the payroll register. 3. Compute the amount of social security tax to be withheld from each employee's gross earnings. Assume a 6.2 percent social security rate on the first $132,900 earned by the employee during the year. Enter the figures in the payroll register. 4. Compute the amount of Medicare tax to be withheld from each employee's gross earnings. Assume a 1.45 percent Medicare tax rate on all salaries and wages earned by the employee during the year. Enter the figures in the payroll register. 5. Determine the amount of federal income tax to be withheld from each employee's total earnings. Use the tax tables in Figure 10.2a \& Figure 10.2b to determine the withholding for Russell. Withholdings are $112.00 for Dodger, $323.00 for Garcia, and $258 for Dollar. Enter the figures in the payroll register. 6. Compute the net amount due to each employee and enter the figures in the payroll register. 7. Dodger and Russell are office workers. Garcia and Dollar are delivery workers. 8. Prepare a general journal entry to record the payroll for the week ended December 21, 20X1. 9. Prepare a general journal entry on December 23 to summarize payment of wages for the week. Analyze: What percentage of total taxable wages was delivery wages? Analyze: What percentage of total taxable wages was delivery wages? Complete this question by entering your answers in the tabs below. Compute the regular, overtime, gross earnings; social security tax and Medicare tax to be withheld from each employee's earnings. Assume a 6.2 percent social security r. during the year. Assume a 1.45 percent Medicare tax rate on all salaries and wages earned by the employee during the year. Determine the amount of federal income tax (Use the table shown in Figure 10.2A \& Figure 10.2B whichever is applicable) to determine the withholding for Russell. Withholdings for Dodger is $112.00, $323.00 fo amount due to each employee. (Dodger and Russell are office workers. Garcia and Dollar are delivery workers.) (Round your intermediate calculations and final answers t. ars in the tabs below. I security tax and Medicare tax to be withheld from each employee's earnings. Assume a 6.2 percent social security rate on the first $132,900 earned by the employee rate on all salaries and wages earned by the employee during the year. Determine the amount of federal income tax to be withheld from each employee's total earnings. 2B whichever is applicable) to determine the withholding for Russell. Withholdings for Dodger is $112.00,$323.00 for Garcia, and $258 for Dollar. Finally compute the net Ire office workers. Garcia and Dollar are delivery workers.) (Round your intermediate calculations and final answers to 2 decimal places.)
